Deregulation Bill

Baroness Donaghy Excerpts

Tuesday 3rd February 2015 Lords Chamber

Faced with the scale of the concerns reflected in those consultation responses, it would be foolhardy for the Government to proceed as planned. Will the Minister tell us now what the Government propose to do? If they want time to consider and need a pause, then, frankly, our amendments give them the opportunity to do so. They keep alive the Löfstedt concept but set down the rigorous tests required for it to be implemented. Having said that, we have no doubt that the right thing to do is to give it up. But if we do not amend the Bill today, we are giving the Government the green light to implement what has been exposed as deeply flawed and deeply dangerous. They must not be allowed to play fast and loose with our health and safety system. I beg to move.

[Baroness Donaghy (Lab)]

My Lords, it is important to place on the record and clarify some of the misunderstandings that took place in Committee. At the beginning of the discussions on the Bill, the Government prayed in aid, with a great deal of enthusiasm, the recommendations of Professor Löfstedt, who is professor of risk management at King’s College London. That enthusiasm became less and less as Members of the Committee challenged some of the statements contained in the proposals. Certainly, my noble friend Lord McKenzie challenged them on a number of occasions.

In Committee on 21 October, the noble Lord, Lord Curry of Kirkharle, said:

“I was in contact with Professor Löfstedt in the past week. He has seen the wording of the Bill and appears to be very content with it”.—[Official Report, 21/10/14; col. 568.]

It is important that we set the record straight: Professor Löfstedt is not in the least bit happy. My noble friend has already quoted from his letter. To save time, I will quote a small additional bit. He says that,

“the proposed Government list may increase injury and death in the workplace something that I never intended with my original recommendation”.

It is very serious that there has been a misunderstanding about the authoritative recommendations that were claimed to be behind this proposal. I agree with my noble friend: it will increase confusion; it will add complexity to the Health and Safety at Work etc. Act; it will add burdens to the conscientious self-employed who want clarification about their obligations; and it is a charter for cowboys. I urge the House to support the amendment.

[Lord Lea of Crondall (Lab)]

My Lords, it is very noticeable that when people such as those from the Federation of Small Businesses are asked, “Where is the evidence that more people ought to be excluded?”, they say, “It is not a question of particular evidence; it is a question of perception”. Something rings a bell in my mind when somebody says, “It is not the evidence; it is a question of perception”. As somebody once said, what about changing the perception? I think that is where we are at the moment. Indeed, that is where the Government and the employers do not want us to be—to look at the evidence.

Instead, there are lots of crocodile tears and lots of red herrings dragged across the trail. One red herring is, “They do it in Germany”. Well, they do lots of things in Germany. In the one minute I have available, I say to the Government that if they would like to start citing Germany and give us the whole employment package that they have in Germany, we on this side will vote for it. I put that proposal; perhaps the Government would like to agree to it.

Finally, there is a trend in Britain today, whether or not it is being deliberately promulgated—that makes it sound like some sort of conspiracy theory, but I do not go in for conspiracy theories because we are often at the receiving end of them. But if there has been an increase in self-employment, it is hard to reconcile with the idea that it is very difficult to be self-employed now because of all the red tape. Anyway, on one side there has been a vast increase in self-employment, if we can get our brains around that. On the other side, there are a number of people who do not have contracts of employment. That is partly a question of whether, ex hypothesi, in a static labour market there are a greater number of people in work. But on the employed side of the labour market, which is the vast majority, the quality of the contracts of employment is being reduced bit by bit.

One of the great advances since the war has been to improve the quality and content of the contract of employment. If you were to interview a random group of self-employed people and a random group of people with good contracts of employment, a lot of people who are self-employed would turn out to have some sort of relation to the employed but with a subcontract in the middle whereby they are not really self-employed—they are on something which does not give them a contract of employment with four weeks paid holiday and all the rest of it. Will the Minister therefore comment on the fact that it is very desirable that the good-quality contract of employment terms are a benchmark for the self-employed, and that this is not a further means of endeavouring gradually to wear away a benchmark on which we in this country have always been able to rely?